Summary
E. I. du Pont de Nemours and Company (DuPont) reported a decrease in net sales and net income for the three and six months ended June 30, 2015, compared to the same periods in 2014. This decline was primarily attributed to negative currency impacts, lower sales volumes, and the absence of sales from divested businesses. A significant event during the period was the completion of the separation of its Performance Chemicals segment through the spin-off of The Chemours Company on July 1, 2015. The company also announced plans to repurchase approximately $4 billion of its common stock using proceeds from the Chemours distribution. Despite the revenue decrease, DuPont highlighted cost savings from its strategic redesign initiative, which improved earnings per share. The company also benefited from a legal claim settlement that provided a pre-tax gain. Management noted ongoing efforts to manage restructuring charges and integration costs related to business separations. The outlook for the full year 2015 was revised to exclude Performance Chemicals earnings and reflected continued weakness in agricultural markets.
Financial Highlights
53 data points| Revenue | $7.12B |
| Cost of Revenue | $4.10B |
| Gross Profit | $3.02B |
| R&D Expenses | $495.00M |
| SG&A Expenses | $1.27B |
| Operating Expenses | $7.70B |
| Operating Income | $1.64B |
| Interest Expense | $94.00M |
| Net Income | $945.00M |
| EPS (Basic) | $1.04 |
| EPS (Diluted) | $1.03 |
| Shares Outstanding (Basic) | 905.76M |
| Shares Outstanding (Diluted) | 911.68M |
Key Highlights
- 1Net sales decreased by 11% for the three months ended June 30, 2015, to $8.6 billion, and by 10% for the six months ended June 30, 2015, to $17.8 billion, driven by negative currency impacts and lower sales volume.
- 2Net income attributable to DuPont was $940 million for the three months ended June 30, 2015, a 12% decrease from the prior year, and $1,971 million for the six months, a 21% decrease.
- 3The company completed the spin-off of its Performance Chemicals segment, The Chemours Company, on July 1, 2015, which will be reflected as a discontinued operation starting in the third quarter.
- 4DuPont announced an intention to repurchase approximately $4 billion of its common stock using proceeds from the Chemours distribution, with $2 billion targeted for repurchase by December 31, 2015.
- 5Cost savings from the strategic redesign initiative contributed $0.10 per share to earnings in the second quarter and $0.20 per share year-to-date.
- 6The company recorded a pre-tax gain of $112 million related to the settlement of a legal claim.
- 7Total debt increased to $12.7 billion from $10.7 billion primarily due to debt issued by Chemours, offset by a debt exchange and paydowns.